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Potential budget compromise still means a large fisc
While both sides have made considerable progress moving towards a compromise, there is still a large chance a compromise will not be reached and we will all go over the cliff January 1 to face a bruising battle over the debt ceiling in late January. Even if a compromise is reached and a debt ceiling fight is avoided, the fiscal cliff may still amount to about 1% of GDP, a sizeable drag to a slow motion expansion.
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